Stock markets across Asia and the Arab world opened Monday under heavy pressure as investors reacted to the escalating military conflict between the United States, Israel and Iran, sending oil prices sharply higher and triggering a flight toward safer assets such as gold.
Oil prices surge as energy routes face disruption
The most immediate market reaction came in energy markets. Oil prices surged by as much as 10 per cent in early Asian trading as traders feared disruptions to global energy supplies.
Brent crude briefly jumped above $80 per barrel after the strikes, with some analysts warning prices could move toward $100 if hostilities intensify or if shipping through the Strait of Hormuz becomes restricted.
The strategic waterway handles roughly one-fifth of the world’s seaborne oil trade, making it one of the most sensitive points in the global energy system. Any prolonged disruption could significantly increase energy costs for import-dependent economies, particularly across Asia.
Higher oil prices also pushed gold prices higher as investors sought safe-haven assets amid the geopolitical turmoil.
Arab markets shaken as trading halted in the UAE
Markets across the Gulf region also reacted sharply to the conflict. Authorities in the United Arab Emirates took the unusual step of suspending trading on the Abu Dhabi Securities Exchange and the Dubai Financial Market for two days in order to stabilise financial conditions amid the escalating war.
The move reflects growing concern among Gulf states that the conflict could spread across the region. Several Iranian missile strikes and retaliatory military actions have already been reported across Middle Eastern territories, raising fears of wider instability.
Investors are particularly focused on the economic implications for energy markets, shipping routes and regional infrastructure.
Global financial ripple effects likely
Economists warn that the conflict could have far-reaching economic consequences beyond the Middle East. Rising oil prices risk pushing global inflation higher at a time when many central banks are still battling price pressures.
Asian economies are especially vulnerable because many rely heavily on imported energy. Higher fuel costs could weaken economic growth, reduce corporate earnings and place additional pressure on currencies across emerging markets.
With the military confrontation between the United States, Israel and Iran continuing to evolve, analysts say financial markets are likely to remain volatile throughout the week as investors track geopolitical developments and potential disruptions to global trade and energy flows.
Newshub Editorial in Asia – March 2, 2026
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